Visa types (subclass 417 and subclass 462) and conditions
2.1
The Working Holiday Maker (WHM) program comprises two visa subclasses:
the Working Holiday (subclass 417) visa; and
the Work and Holiday (subclass 462) visa.
2.2
The Working Holiday visa is open to applicants between 18 and 30 years old (or 35 years for Canada, France and Ireland), who meet financial, health and character requirements and are not accompanied by dependent children during their stay in Australia.
2.3
The Work and Holiday visa requires applicants to meet the above criteria, in addition to requiring applicants to have completed two years of post-secondary study (excluding the United States), possess functional English, and in some cases, provide a letter of support from their government.
2.4
The Working Holiday visa provides uncapped visas to 19 partner countries and regions: Belgium, Canada, Cyprus, Denmark, Estonia, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Korea, Malta, Netherlands, Norway, Sweden, Taiwan, and the United Kingdom.
2.5
The Work and Holiday visa is open to 25 partner countries, but operates under annual visa caps (excluding the United States). Eligible partner countries and their annual visa caps are found in Table 2.1:
Table 2.1: Partner countries and their annual visa caps (subclass 462)
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Argentina
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3400
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Austria
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200
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Chile
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3400
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China
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5000
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Czech Republic
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500
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Ecuador
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100
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Greece
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500
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Hungary
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200
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Indonesia
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1000
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Israel
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2500
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Luxembourg
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100
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Malaysia
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1100
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Peru
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1500
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Poland
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1500
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Portugal
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500
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San Marino
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100
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Singapore
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2500
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Slovak Republic
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200
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Slovenia
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200
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Spain
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3400
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Thailand
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2000
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Turkey
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100
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Uruguay
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200
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United States
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Uncapped
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Vietnam
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1500
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Source: www.immi.homeaffairs/what-we-do/whm-program/status-of-country-caps
2.6
Both the Working Holiday and Work and Holiday visas are 12-month visas. Whilst WHMs are not required to work, they may work for the entirety of their stay in Australia. Generally, WHMs may work for a single employer for no more than six months; however, they may work for an employer for longer than this if the work is:
In different locations and work in any one location does not exceed 6 months;
In plant and animal cultivation anywhere in Australia;
In certain industries in northern Australia:
Aged Care and Disability Services
Assisting bushfire recovery efforts from 17 February 2020; or
In critical sectors during the COVID-19 pandemic from 4 April 2020 (including agriculture, food processing, health, aged and disability care, and childcare).
2.7
Allowing WHMs undertaking certain work in northern Australia to extend their employment beyond the typical six month limit allows for greater employee continuity and supports businesses and industries in northern Australia.
2.8
In 2005 and 2016 respectively, the Working Holiday and Work and Holiday visas were altered to allow WHMs to apply for a second-year visa if they completed three months of specified work in specified locations. As of 1 July 2019, second-year WHM visa-holders (of both subclasses) who undertake six months of specified work in a specified region are eligible to extend their visa for a third year.
2.9
Specified work includes plant and animal cultivation, fishing and pearling, tree farming and felling, mining and construction.
2.10
Working Holiday (417) visa holders are able to undertake specified work anywhere in regional Australia to qualify for their second- or third-year visa.
2.11
Work and Holiday (462) visa holders are required to undertake specified work in northern Australia only, excepting plant and animal cultivation and construction, which can be undertaken in specified areas of regional Australia.
2.12
In addition Work and Holiday visa holders can work in tourism and hospitality in northern Australia only to qualify for a second- or third-year visa.
2.13
The targeting of regional areas, northern Australia, and major agricultural, construction and mining hubs provides support to these industries to meet labour market needs.
2.14
Following the 2019-20 summer bushfire season the criteria for specified work for both WHM visa subclasses was expanded to include bushfire recovery work undertaken after 31 July 2019, in bushfire-affected areas.
2.15
Additionally as the COVID-19 pandemic unfolded work in the healthcare or medical sectors anywhere in Australia, undertaken after 31 January 2020, can also be counted towards the specified work for a second- or third-year WHM visa. The same conditions around specified work and regional areas apply to both second- and third-year visa eligibility.
2.16
WHM visas are unusual in that they are not exclusively for either travel or work, unlike most other visas granted to non-citizens entering Australia. This provides WHMs with significant flexibility in how they spend their time in Australia, as the visa is not contingent on maintaining employment or refraining from work. However, most WHMs (84 per cent) combine the travel opportunities with some work.
History of the program
2.17
The WHM program was established on 1 January 1975 as:
…a cultural exchange program to enhance Australia’s international standing and bilateral links with partner countries and regions. The program was created to provide opportunities for young people to travel and undertake short-term work or study to supplement their holiday experience.
2.18
WHM arrangements enable Australians to access similar opportunities to work, travel, and participate in cultural exchange overseas.
2.19
Since the 1970s Australia has operated under a universal visa system, which requires all non-citizens to hold a valid visa to enter Australia.
2.20
Following the introduction of the universal visa system, the WHM program commenced with the Working Holiday visa initially available to eligible individuals from Canada, Ireland and the United Kingdom. In 1980, a WHM visa arrangement was reached with Japan, and in 1995 and 1996 citizens of Korea and Malta, respectively, were made eligible for the Working Holiday visa. In 2006, the Netherlands became the nineteenth and final country to be added to the Working Holiday visa arrangements.
2.21
In 2005, the Work and Holiday visa was introduced along with additional eligibility requirements and annual visa caps. Thailand was the first country to join the Work and Holiday visa scheme, which now has reciprocal arrangements with 25 diverse partner countries and regions. Any new WHM arrangements are negotiated under the Work and Holiday visa subclass.
2.22
The WHM program places a strong emphasis on cultural exchange. However, WHMs have also become a crucial part of the seasonal labour force. For example, the National Farmer’s Federation (NFF) told the Committee that WHMs are crucial to ensuring produce is harvested on time.
Longer term trends
2.23
Since the commencement of the WHM program trends have emerged surrounding the number of WHMs travelling to Australia, their country or region of origin, and the ratio of first-year visas to subsequent visa extensions.
2.24
The highest number of WHM visas issued across both subclasses was in 2012-13, with 258,248 visas granted. The number of WHM visas issued has decreased steadily since then. Since 2012-13, WHM visa grants fell by approximately 3.4 per cent per year, to approximately 210,000 in 2018-19.
2.25
In 2019-20, a total of 149,249 WHM visas were issued across both the Working Holiday and Work and Holiday subclasses. Of this total, 112,127 were first-year visas, 34,444 were second-year visas, and 2,678 were third-year visas.
2.26
The Australian National University (ANU) Development Policy Centre provided some additional analysis on this trend:
…the number of WHMs travelling to Australia, on the first-year WHM visa, fell for six years in a row between 2012-13 and 2018-19, by a total of 24 per cent. The top five WHM first-year visa holding countries – United Kingdom, France, Germany, South Korea and Taiwan – accounted for 34 per cent (nearly 50,000 less visas) of this drop in visas granted.
2.27
The second-year WHM visa has observed a slightly different trend than the aggregate of all WHM visas. Between 2005-06, when the Working Holiday visa was extended to a second year, and 2012-13, the number of second-year WHM visas issued followed the same overall upward trend as the first-year visa, peaking in 2012-13, before decreasing.
2.28
However, in 2016-17, when the Work and Holiday visa was also extended for a second year, second-year visa numbers began to increase again, whilst first-year visas continued to decline.
2.29
The ANU Development Policy Centre told the Committee in their submission that this trend:
…shows a direct response to the availability of second-year visas to a broader range of partner countries via the [Work and Holiday] 462 visa subclass and a greater willingness of citizens of these partner countries to work in regional Australia and on farms.
2.30
Additionally the ANU Development Policy Centre also recognised that in 2019-20, applications for second-year WHM visas remained relatively high: the ratio of second-year to first-year visas in 2019-20 was 31 per cent (exceeding 2018-19 where the ratio was 26 per cent), and the second-to-first-year ratio is growing consistently.
2.31
Moreover statistics show that the newer Work and Holiday visa (introduced in 2005, 30 years after the Working Holiday visa), is growing and in 2019-20 represented 22 per cent of all WHM visas.
2.32
In addition to the consistent decline in the total number of WHM visas issued, the advent of the COVID-19 pandemic saw a significant impact on the total number of WHMs in Australia.
Impact of COVID-19 on Working Holiday Makers
2.33
In response to the international spread of COVID-19 on 20 March 2020, the Australian international border was closed to all non-citizens and non-residents, effectively stopping those with WHM visas from entering Australia.
2.34
Shortly after this on 22 March 2020, major sources of employment for many WHMs also started to close. This included many hospitality industry venues, such as pubs, clubs, cafes and restaurants.
2.35
Around this time domestic travel restrictions began to tighten with Western Australia, South Australia and the Northern Territory being the first to close their internal borders, quickly followed by Queensland, Tasmania, Victoria and the Australian Capital Territory.
2.36
Whilst recognising the importance of WHMs to the agricultural workforce, on 3 April 2020, the Prime Minister, the Hon Scott Morrison MP, outlined a range of measures that would need to be in place to help stop the spread of COVID-19 in rural and regional areas.
2.37
The Prime Minister outlined the travel restrictions that would need to be applied to WHMs who travel to agricultural regions to pursue work:
They will be required to self isolate and to go on to Australia.gov.au and register for self-isolation and do that where they are now for a period of 14 days before they transfer to another part of the country out in a rural or regional area. At that time, their employer will be looking to see that they have conducted that self-isolation before they would be employed in that work.
2.38
The Prime Minister also urged those in Australia on temporary visitor visas, including WHMs, to consider their position, and that:
If they’re not in a position to be able to support themselves, then there is the alternative for them to return to their home countries.
2.39
The COVID-19 pandemic caused a significant reduction in the number of WHM in Australia. The Committee received evidence on the number of WHMs leaving Australia through the pandemic event. According to the Department of Home Affairs (Home Affairs) on 30 June 2019 there were 135,236 WHMs in Australia. As at 30 June 2020, this had reduced to 85,691 WHMs in Australia.
2.40
Beyond June, the Committee was told that the number of WHMs in Australia was continuing to fall. Home Affairs provided further updates on WHMs in Australia, noting that as at 31 August 2020, 71,883 WHMs remained in Australia. By 25 October 2020, the number had declined to just over 60,000.
2.41
On 2 August 2020, there were 24,592 persons outside Australia who had been granted WHM visas (including paying the AUD$485 visa fee), but had not activated the visa by entering Australia.
2.42
The highest number of WHMs in Australia during 2019-20 was in November 2019, when 145,411 WHMs were onshore.
2.43
During this peak in November 2019, the partner countries and regions with the most WHMs in Australia were the United Kingdom (with 24,828 WHMs in Australia), France (16,066), South Korea (14,463), Taiwan (13,869) and Germany (13,482). Over 95 per cent of WHMs in Australia come from the top 20 source countries and regions who have WHM arrangements with Australia. Of the top five visa-holding countries, all have arrangements with Australia through the original Working Holiday (subclass 417) visa.
2.44
Of the top 20 partner countries and regions with the most WHMs residing in Australia, 17 saw a decrease in the number of WHMs in Australia during 2019-20. The exceptions were Spain, Argentina and Indonesia, which saw the number of WHMs in Australia increase by 35.8 per cent, 19.8 per cent and 6.7 per cent respectively.
2.45
However, the number of South Korean WHMs in Australia fell by 58.3 per cent, Japanese WHMs by 55.8 per cent, and Taiwanese WHMs by 45.5 per cent during 2019-20. The total number of WHMs onshore in Australia from all 44 partner countries and regions during 2019-20 fell by 33.4 per cent.
2.46
In terms of future trends, Home Affairs stated that:
It is very difficult to predict with the range of variabilities there. But if you look over the past four or five months we’ve been seeing 6,000 to 8,000 a month—that sort of number—departing. That’s an indication of where we might go. It is hard to tell, of course, at what point we hit the group who’s really committed regardless, and we might be getting towards that point.
2.47
Clearly, the onset of the COVID-19 pandemic and the necessary steps taken to prevent it becoming widespread in Australia has drastically reduced the number of WHMs in Australia. This in turn has affected the labour force in some industries, as some sectors of the Australian economy had become—to varying degrees—reliant on WHMs as a source of temporary labour.
2.48
The following table shows the number of WHM visa holders in Australia by visa expiry from October 2020 to June 2021 as at 31 October 2020.
Table 2.2: Number of WHM in Australia by visa expiry
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Entry expiry date – month
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WHM in Australia as at 31 Oct 2020
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October 2020
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272
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November 2020
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6 953
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December 2020
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6 350
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January 2021
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7 956
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February 2021
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9 178
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March 2021
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7 087
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April 2021
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2 200
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May 2021
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2 386
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June 2021
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2 377
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Source: Department of Home Affairs, Answers to Questions on Notice 12, 30 October 2020 p. 1-2
2.49
When asked whether a blanket extension to WHM visas would help to slow the departures from Australia, Home Affairs stated:
At the moment, if someone on a working holiday-maker visa really wants to stay in Australia, the options are there for them to do so, particularly with the introduction of the pandemic event visa. What we're seeing is a natural result of the global crisis that we're facing and the inclination of, to a large extent, young people to want to travel back to be with family.
The contribution of Working Holiday Makers to Australia
Economic contribution
2.50
The WHM program benefits Australia’s economy through tourism revenue, work undertaken by visa-holders, and associated job creation. Austrade figures suggest the program is worth about $3.1 billion annually to the Australian economy.
2.51
Home Affairs informed the Committee that, ‘Working Holiday Makers tend to stay longer, spend more money and undertake more travel in regional areas than most international visitors to Australia.’
2.52
According to Austrade, the International Visitor Survey data shows that WHMs:
Stay an average 148 nights;
Spend 34 per cent of the time in regional areas; and
Over 50 per cent were on a repeat visit to Australia.
2.53
Adventure Queensland noted the significant contribution that visitor spending makes to job creation in Queensland:
Tourism is a huge job creator here in Queensland. In my area alone, it creates 250,000 jobs on Fraser Island and the Sunshine Coast. That ranges from tour guides, who are actually facilitating these adventure activities, right through to mechanics, who are maintaining fleets of vehicles, and everything in between. It really filters right through the community, especially in regional Queensland.
2.54
The average stay of WHMs in Australia is approximately eight months. However, many WHMs do choose to stay longer than this, as evidenced by the uptake of the second- and third-year visas. The eligibility requirements for WHM visa extensions also suggest that WHMs who stay longer than 12 months spend a sizeable proportion of their extended stay in Australia working and spending money in non-metropolitan areas.
2.55
The Backpacker and Youth Tourism Advisory Panel (BYTAP) stated that:
WHMs can undertake temporary work, which funds their travels. As a visa requirement, each one has to show evidence of a minimum of $5,000 in funds to support themselves during the initial stages of their stay in Australia. In reality, each one spends double that – a total of $10,400…
2.56
By contrast, according to Home Affairs, those travelling to Australia strictly to holiday spend an average of $4,000 during their stay. This demonstrates the value of WHMs to the tourism economy.
2.57
In addition to generating tourism revenue, BYTAP highlighted that WHMs assist in addressing labour shortages in agricultural and regional tourism sectors. In doing so WHMs spend their income in regional communities, with the majority of spending by WHMs going towards hostels, restaurants, cafes, and supermarkets. This contributes to local economies and creates jobs through increasing demand for goods and services, such as accommodation.
2.58
Mr Casey Brown, a spokesperson from Agri Labour, told the Committee about the importance of WHMs to regional communities:
The working holiday makers stimulate those regional communities. They live, they rent and they spend a large portion of their earnings in those regional communities.
2.59
The Australian Chamber – Tourism stated that:
According to the National Institute of Labour Studies at Flinders University [published in 2009], WHM created 23,000 jobs in the Australian economy, and spent two and a half times more than they earned.
2.60
WHMs also contribute to the education sector, ‘contributing around 4.4 per cent of total international student visas and enrolments’ and also engaging with the vocational and language education sector through ascertaining qualifications such as the Responsible Service of Alcohol, construction induction (white/green card) and English language certifications.
2.61
WHMs contribute to the workforce across a broad range of sectors, undertaking work in agriculture, hospitality and tourism, childcare, healthcare, and assisting with other critical work such as bushfire recovery efforts.
Effects in regional areas
2.62
The Committee heard from stakeholders who reflected the importance of WHMs to their regional communities. Particularly the Committee heard that WHMs fill critical labour shortages, and contribute significantly to regional economies.
2.63
BYTAP stated that WHMs play a key role in taking up work roles in regional areas, dispersing ‘widely and with short notice into regional areas for short term and seasonal work.’
2.64
The Australian Tourism Industry Council (ATIC) confirmed that:
Backpackers within the WHM Program have long-demonstrated their propensity to travel extensively throughout Australia, integrate well and take up hard-to-fill roles across key regional industries namely in agriculture and horticulture, hospitality, retail and, of course, tourism.
2.65
The Member for Grey, Mr Rowan Ramsay MP, noted WHMs are willing to fill jobs in rural and remote parts of Australia that Australians are not:
Unfortunately being committed to employing Australians, offering life-changing opportunities and being frustrated that unemployed Australians cannot be enticed into the “Outback” does not keep the doors of these businesses open. We simply cannot get enough unemployed workers to even show any interest.
Not-with-standing the Covid 19 pandemic, backpackers are prepared to do so, especially where it provides an opportunity to extend their visa.
2.66
Professor Richard Holden, noted that the reliance on WHMs and other temporary visa holders for agricultural and other industries is not something to be embarrassed about:
The work is hard and it's based in areas where people might find it somewhat less appealing to live for the long term, notwithstanding the many positive attributes that those regional communities have.
… coming here on a working holiday, being legally allowed to work and then spend time travelling around the country is really appealing for a lot of people from other countries. We're essentially selling that right; we're essentially selling visas and the agriculture and horticulture sectors are the beneficiaries of that. The lifestyle dividend of Australia is that we can monetise our lifestyle by giving people access to it for a particular period of time and these various short-term visa programs allow that lifestyle dividend to be channelled into specific sectors. I don't think we should be embarrassed or chagrined about that. I think that it's one of the great pluses of Australia and we're finding a way to monetise that for the benefit of the Australian community. The ultimate beneficiaries of this are Australian consumers who can buy great produce at comparatively low prices. That's a benefit that's spread around the Australian community. It's not captured by one specific area or specific locality. The side benefit of that is: it happens to help rural and regional Australia and producers who are battling many other things, including drought and climate change. It's entirely appropriate that we rely on that.
2.67
Additionally, the Australian Chamber-Tourism gave evidence on the unique role that WHMs play compared to Australian workers:
The flexibility and value of WHM to the seasonal labour needs of businesses, especially in regional Australia is substantial … This seasonal work is often not attractive or suitable for young unemployed Australians who are generally looking for longer-term employment outcomes closer to home.
2.68
As well as filling critical roles in regional areas, WHMs play an important role in stimulating local economies through time spent working and spending money in these regions.
2.69
The Australian Tourism Export Council (ATEC) informed the Committee that of the average of 148 nights that WHMs spend in Australia, approximately one-third (34 per cent) are spent in dispersed regions. Joint evidence provided by the Australian Hotels Association and Tourism Accommodation Australia noted that 42 per cent of WHMs visit between three and seven locations, and 22 per cent visit more than eight locations during their time in Australia.
2.70
The eligibility requirements for second- and third-year WHM visas continue to incentivise WHMs to travel to regional communities to undertake work to extend their stay in Australia.
Working Holiday Makers and Australia’s International Reputation
2.71
The WHM program allows for reciprocal arrangements between Australia and its partner countries and regions. These arrangements support young Australians to access similar work and travel opportunities overseas. It also provides another avenue for tourists to visit and experience Australia, and enhances bilateral links between Australia and other nations.
2.72
The Department of Foreign Affairs (DFAT) and Austrade noted the importance of the program to Australia’s international relations, particularly in light of the cultural exchange elements, with many Australians also travelling overseas to ‘spend time working in other markets and other countries’. According to DFAT and Austrade, this forms ‘a strong part of our bilateral relationship and bilateral agreements’.
2.73
WHM arrangements are to the mutual benefit of both Australia and the respective partner country or region. For example, the WHM arrangements between Australia and Sweden:
…[provide] wider opportunities for citizens, particularly the youth of Sweden and Australia, to appreciate the culture and general way of life of the other for the purpose of promoting mutual understanding between the respective countries…
2.74
WHMs from Sweden entering Australia (or Australians visiting Sweden on a Working holiday visa for young people, the Swedish equivalent on the WHM program visa) are not required to take out comprehensive health insurance. This is due to Australia and Sweden’s Reciprocal Health Care Agreement which provides coverage for some healthcare costs under the public health systems of the respective country.
2.75
Sweden is a partner country of Australia under the Working Holiday (subclass 417) visa, with WHM arrangements established in 2001, and no annual visa cap. The nature of Swedish-Australian WHM arrangements align with, and contribute to, the established bilateral relationship and existing agreements (such as the Reciprocal Health Care Agreement) that the two countries share.
2.76
Additionally, DFAT notes that France and Australia’s WHM arrangements have strengthened the bilateral relationship between the two nations, ‘enhancing cross-cultural exchange and interpersonal links’.
2.77
Home Affairs noted the specific factors which contribute to establishing WHM arrangements with other countries:
When we look at questions about new arrangements or, indeed, visa cap increases, we look at a range of factors. They go broadly to the strength of the bilateral relationship—cultural and economic ties. We look at the partner countries' population size. We give consideration to immigration risks that might be presented by particular cohorts. We look at the ability of the partner country to provide reciprocity for Australians. We also look at their capacity to conclude negotiations in a timely manner. Because we're talking about bilateral negotiations, there are always other factors that come up in the context of those bilateral negotiations.
2.78
Home Affairs also indicated that it is currently negotiating new Work and Holiday arrangements with Andorra, Brazil, Croatia, Fiji, India, Latvia, Lithuania, Mexico, Monaco, Mongolia, Philippines, Solomon Islands, and Switzerland. These arrangements, once finalised, would extend the range of opportunities for young Australians to travel and work, whilst offering reciprocal benefits to passport holders from those countries to enter Australia.
2.79
Whilst individual bilateral arrangements are negotiated separately, Australia’s WHM program as a whole is not dissimilar to those of other nations. Other countries with similar programs include Canada (through the International Experience Canada program), New Zealand, and the United Kingdom (under the Tier 5 Youth Mobility Scheme visa).
2.80
The ANU Development Policy Centre noted the findings of an OECD 2019 Report, which highlighted that Australia is the most popular destination for WHMs, compared to other OECD countries with similar programs. Overall, Australia receives 44 per cent of all WHMs across 10 OECD countries.
2.81
The WHM visa contributes to Australia’s international reputation and its attractiveness as a destination to visit and live. Word of mouth played an important role in the decision of Miss Vanessa Klaus, a WHM from Germany, to travel to Australia. She told the Committee that:
I actually have older friends who’d been in Australia before for a working holiday visa, and they told me the best about it. They were like ‘Australia is amazing. You always have the chance for work anywhere you want to’, [up to] the six months that is the rule [for staying with a single employer] here.
2.82
Ms Esther Yew, a WHM from Malaysia also noted that colleagues at her work had recommended a working holiday in Australia. In terms of feedback from friends and acquaintances in Malaysia more generally, Ms Yew stated:
Overall, it has been a pretty positive experience, and with feedback about Australia, especially in terms of backpacking. There were a couple of news articles online, back in Malaysia, promoting it and saying: ‘If you would like to experience regional Australia, please do so with this working holiday visa’, and there’s a bit of an advertisement going on as well back home in Kuala Lumpur.
2.83
The experience WHMs have in Australia will not only influence the likelihood of WHMs recommending Australia to friends thinking about working and travelling in another country but the ongoing reputation of Australia overseas.
2.84
In addition to attracting a significant number of WHMs, Australia has a diverse WHM program, with 44 partner countries. Only New Zealand has more with 45; Canada has specific working holiday arrangements with 35 countries, and the UK with 8. This demonstrates the breadth of Australia’s bilateral engagements.
Cultural exchange
2.85
Cultural exchange is a core component of the WHM program. Whilst WHMs are important in meeting labour demands in a number of industries, cultural exchange is at the heart of the program’s policy functions, and is an invaluable part of the program.
2.86
Home Affairs stated that:
…the cultural exchange component remains a very important part of the Working Holiday Maker program … Since 2005, with the introduction of the second visa and the possibility of qualifying for a second visa through work in regional Australia, there's been a slight shift in focus, but, at its heart, it remains a cultural exchange visa. I say that because it is open to young people regardless of their occupational qualification.
2.87
Mr Alex Hill, of Adventure Tourism Victoria, told the Committee that WHMs who stay longer in Australia often assimilate into communities, undertaking activities ‘like [joining] local sports clubs or local groups, which just increases further that cultural exchange’.
2.88
Mr Paul McGrath from YHA Australia discussed the cultural exchange which the WHM program is founded upon:
Here in Australia when working holiday-makers stay in our hostels our main aim and mission is to bring different communities together … In a hostel the main purpose is actually to meet and connect with people from other countries. Within all of our 70 hostels around Australia that's the culture. We assist and enable people to mix and mingle. I truly mean that when one of our hostels is full it is like the United Nations, because you have a complete blend and mix of different nationalities conversing and interacting with each other. We run in-hostel events to help those types of things and provide local tours and guides to share with them their knowledge of Australia.
Overseas the culture of the youth hostels—in the UK it is under the brand of YHA—is very much the same about getting into local communities and mixing with local experiences. As part of Hostelling International we all have the same philosophy about providing accommodation and a safe environment for youth who are travelling around those countries. It's at a very grass roots level, and it's very localized about the cultural exchange that the travellers have.
2.89
DFAT and Austrade provided the Committee with details of research conducted by Tourism Australia on the experiences of WHMs in Australia. This research, focused on France, Italy, Germany and the United Kingdom, showed that:
Participants enjoyed the laidback Australian lifestyle, the chance to make Australian friends, and the opportunity to experience unique and diverse destinations. Many also reported the program provided an opportunity to take a “gap year” after finishing school and before starting university, allowing them to gain life skills, independence and improve their English language ability. Australia was also seen as a remote and secure escape.
2.90
The Uniting Church in Australia, Synod of Victoria and Tasmania and the Salvation Army Australia expressed a view that the perception of the WHM program is that it is ‘a labour program on which key industries and regional communities rely’, rather than serving simply as a cultural exchange program.
2.91
However WHMs who appeared before the Committee clearly emphasised the value of the cultural exchange aspects of their time in Australia. For instance, Ms Jacqsyn Dieziger, from the state of Montana in the United States, told the Committee that during her time in Australia ‘it has been an amazing experience, getting to know Australian culture and living with a family’.
2.92
Ms Dieziger has spent her time in Australia working as an au pair for a Victorian family. In terms of her motivation to undertake this, Ms Dieziger said:
I came here as a gap year. I graduated high school in June 2019, and I was looking for something to do over my gap year. I’ve always wanted to come to Australia and I love experiencing different cultures, so I thought it was the perfect opportunity to get out and see all that Australia has to offer.
2.93
Ms Esther Yew, a Malaysian WHM and lawyer, told the Committee about how she chose to take a working holiday in Australia in order to gain work experience, see Australia and experience life in regional Australia.
2.94
Ms Yew’s experience differed to that of Ms Dieziger, in that she arrived in Melbourne and undertook some casual legal work ‘to see what it’s like working in a law firm internationally’. This work provided Ms Yew with the opportunity to earn some money and fulfil her ‘dream to travel around Australia, because there are so many beautiful things that Australia has to offer’.
2.95
Miss Vanessa Klaus, from Germany came to Australia to improve her English and undertake casual work to pay for her travel. Miss Klaus explained:
We used our chance that we were on the working holiday visa, so we did six months of casual work in Sydney. I worked in a café, as a waitress there. It was an amazing chance to meet new people, to improve my English skills and to work as well.
2.96
The broad range of the experiences of WHMs says something about the breadth of opportunities available through having such a flexible program.
Committee comment
2.97
The Committee believes the WHM program has provided Australia with significant economic benefits. The value of WHMs as tourists alone represents $3.1 billion each year to the Australian economy. The work that WHMs undertake in critical industries like agriculture, horticulture and tourism has made them a vital labour source for the Australian economy. For regional Australia, which often struggles to attract tourists and workers, the WHM program provides a lifeline for these communities enabling them to survive economically.
2.98
The cultural exchange opportunities that result from the program are vital, giving young foreign nationals a deeper experience of Australia and its people. Because of the breadth of experiences and travel WHMs undertake, and because of the length of time they spend in Australia, they are likely to get a deeper understanding of Australia and its people than most visitors to our country.
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The program with its opportunity for reciprocity for young Australians to travel to other countries provides our own people with the chance to experience other cultures as well.
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The Committee believes that the WHM visa is an important part of our migration program and endorses a continuing role for this visa.
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The Committee recommends that the Government maintains the Working Holiday Maker program and notes its value to Australia.
Governance of the Working Holiday Maker Program
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The terms of reference for this inquiry involve matters relating to several portfolio agencies within government.
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The WHM program is administered by Home Affairs. Home Affairs is responsible for both leading negotiations for bilateral WHM agreements and the processing of the two WHM visa classes.
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Home Affairs discussed the means through which WHM arrangements are agreed noting it is largely through a bilateral memorandum of understanding, and for some of the earlier agreements through treaties.
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Given that WHMs work rights in Australia are subject to their visa conditions, Home Affairs also provides information to WHMs on Australian workplaces:
We have a very detailed set of information that includes links to the Fair Work Ombudsman and other relevant entities that we provide when they're granted their visa. We also have a push notification that goes out to working holiday makers two weeks after they've arrived in Australia and then again six months after their arrival in Australia. […] So we do our best to make sure that working holiday makers are aware of who they can contact if they run into issues in the workplace and also what their rights are.
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Following their arrival in Australia, Home Affairs also plays a role in ensuring that WHMs are treated fairly in Australian workplaces, and in accordance with Australian workplace laws:
We work very closely with the Fair Work Ombudsman and have been doing so since June 2016 and before. […] We've also developed an assurance protocol with the Fair Work Ombudsman which allows them to guarantee to visa holders that Home Affairs won't be cancelling their visa if they raise concerns about mistreatment at work.
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DFAT and Austrade described their roles in policy development:
Austrade's role in the Australian tourism industry is to develop policy, attract investment and provide research to grow Australia's tourism market share. As part of the Foreign Affairs and Trade portfolio more broadly, of course, we work very closely with our colleagues in the Department of Foreign Affairs and Trade and with Tourism Australia to support this critical sector.
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Tourism Australia is also involved in the program, particularly in relation to marketing. According to Austrade:
Tourism Australia do a lot of work on social media and a lot of campaign activity involving working holiday makers sharing their stories. There's also the australia.com website, a site which Tourism Australia use to promote Australian experiences.
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Tourism Australia’s role also extends to research activity to support the marketing function. Austrade told the Committee about Tourism Australia’s research supporting a regional focus for marketing campaigns by identifying the appeal to WHMs of ‘seeing our nature experiences and experiencing our food and wine offerings’. According to Austrade, this research highlights the ‘factors that we understand are important to that particular cohort’.
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The role of the Department of Agriculture, Water and the Environment (DAWE) has recently increased, due to industry concerns relating to the lack of an available workforce and the Department therefore having a growing interest in the labour supply provided by the WHM program. The exact extent of WHM participation in the agricultural workforce is difficult to quantify, as there is no requirement for WHMs to provide details on their employment.
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DAWE is responsible for examining emerging agricultural workforce challenges through the establishment of the National Agricultural Labour Advisory Committee and the development a National Agricultural Workforce Strategy, which has not yet been released. According to DAWE:
The strategy will consider the workforce challenges facing the sector and recommend actions to attract, retain and upskill the domestic workforce - as well as identify where access to a migrant workforce will be necessary to meet industry needs. Working Holiday Makers will continue to be a critical cohort going forward. The National Agricultural Labour Advisory Committee is leading the development of the strategy, and will report to government by 31 October 2020.
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The Department of Employment, Skills and Education (DESE) delivers programs ‘to assist the agricultural industry to meet its workforce needs’.
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DESE is responsible for the jobactive network, Harvest Trail Services and the Seasonal Worker Programme. Part of its role in administering these programs is to ‘work closely with DAWE on broader agricultural workforce issues’.
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The level of cooperation between the various agencies with responsibility for aspects of Australia’s WHM program was scrutinised in greater detail by the Committee.
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DFAT noted that while Home Affairs takes the lead in ‘bilateral negotiations with potential new partner countries… DFAT works with Home Affairs and other relevant agencies’ on these arrangements’.
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Home Affairs also noted that in negotiating new agreements, there is a ‘whole-of-government consultation process’ that is used to inform any arrangements. Home Affairs works ‘very closely with DFAT to get a sense of the bilateral relationship and cultural and economic ties’. It looks ‘at questions of labour market conditions in Australia and the partner country’.
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Furthermore the wider DFAT portfolio maintains regular input into the overall WHM program:
Home Affairs conducts an annual review of the program, inviting input from a range of Government agencies, including DFAT, Austrade and Tourism Australia. This review considers opportunities to expand the program to new countries and increase caps and age limits for existing agreements. The Foreign Affairs and Trade portfolio contributes economic and strategic insights to these deliberations, drawing on bilateral, international and tourism sector knowledge.
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In terms of the annual review Home Affairs told the Committee that while it chairs the Working Holiday Maker Interdepartmental Committee, the following agencies are represented:
Department of Agriculture, Water and the Environment;
Department of Education, Skills and Employment;
Department of Prime Minister and Cabinet; and
Department of Foreign Affairs and Trade.
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At a broad level Home Affairs noted that there are ‘frequent discussions’ between Home Affairs, DAWE, DFAT and DESE on ‘questions of workforce shortage [and] questions of responses to the COVID pandemic’. However, at present there is no formal interdepartmental committee or mechanism that meets more frequently than the annual review or on an ad hoc basis.
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In regard to the workplace experience of WHMs, DFAT and Austrade told the Committee that they fall outside the interdepartmental cooperation, even via the diplomatic network. Specifically, DFAT told the Committee that it has ‘not received any diplomatic representations from foreign missions on worker exploitation concerns’, but if it did, ‘these would have been referred to the Fair Work Ombudsman’.
Committee Comment
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The Committee believes that greater interdepartmental cooperation is required to provide governance and input to respond to challenges faced by the WHM program. The Committee experienced some frustrations in trying to establish responsibility for broader interagency planning and cooperation around the WHM program. The Committee found it difficult to determine who was responsible for what and how agencies had an input into the development of the program.
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In particular the lack of formal mechanisms to provide cross-portfolio input into all of the issues for this inquiry has, in the Committee’s view, led to a less timely response to workforce planning issues in the context of international border closures than should have been the case. Increasing the frequency of interdepartmental efforts, as well as providing for ad hoc meetings, should assist in providing the responsiveness required under the current circumstances.
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The Committee sees value in the establishment of a high level interdepartmental committee with the capacity to both meet more regularly than once a year, and on an ad hoc basis as required. The challenges of the COVID-19 pandemic have clearly demonstrated the need for this type of inter-portfolio cooperation and collaboration.
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The Committee recommends:
The Department of Home Affairs remains the lead agency with responsibility for the WHM program.
An interdepartmental committee (IDC) to provide oversight of the WHM visa be established. The IDC would meet at least twice a year and comprise senior executive officers from departments and agencies with an interest in the WHM to discuss issues arising from the program. The IDC should have the flexibility to meet on an ad hoc basis as the need arises but especially to deal with agricultural and tourism workforce shortages, issues relating to the employment of WHM and the negotiation of agreements with additional countries.